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ZURICH

‘Mediterranean nights’: Swiss cities to trial late night terrace bar openings

The cities of Zurich, Lucerne and St Gallen will allow bars and restaurants to open their terraces later than usual this spring and summer.

A terrace restaurant in Zurich. Photo by Claudio Schwarz on Unsplash
A terrace restaurant in Zurich. Photo by Claudio Schwarz on Unsplash

Authorities in Zurich and Lucerne have been motivated by a similar project last year in St Gallen, which saw businesses recoup much needed funds after the Covid pandemic. 

St Gallen will repeat the project again this summer. 

Zurich

Zurich’s Mediterranean Nights project will see bars and restaurants allowed to open their terraces to 2am, instead of the current midnight, on six weekends in spring and summer. 

While the project has won support from the hospitality and gastronomy community, neighbourhood organisations have sought to shut it down, even taking the project to court. 

The eventual plan for six weekends was a compromise between the hospitality sector and neighbourhood organisations. 

The specific weekends will be set at a later date. 

Lucerne

Terraces in Lucerne will also be allowed to open until 2am under a similar project. 

Unlike in Zurich however, there will be no cap on the number of weekends that terraces can open later. 

FDP City Councilor Fabian Reinhard backed the project, saying it was worth looking at and there was no guarantee it would lead to a permanent change. 

“It is important that the city of Lucerne simply tries out what works and what doesn’t,” he told Swiss media. 

Reinhard said all factors would be considered, such as noise pollution and disturbances, not just whether the change was economically viable. 

St Gallen

St Gallen trialled the project in the autumn of 2021 and said it was successful. 

In 2022, it will be held over a longer period. 

Do you think Switzerland’s cities should open later? Or is the noise and disruption too much to take? Let us know. 

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ZURICH

Zurich homeowners to pay significantly higher property taxes

Properties are more expensive in Zurich than almost anywhere else in Switzerland, but a planned new charge will place further financial burdens on the canton’s homeowners.

Zurich homeowners to pay significantly higher property taxes

Because Zurich is re-evaluating all properties, homeowners will have to brace themselves for significantly higher tax bills from 2027, cantonal authorities announced onTuesday. 

This step was triggered by two court rulings, according to which many properties in the canton were undervalued. The last estimate took place in 2009, but real estate prices have soared by an estimated 50 percent since then.

Therefore, property tax values are to increase by an average of 48 percent, while  imputed rental values for single-family homes will rise by an average of 11 percent and for apartments by 10 percent.

With this measure, the canton and municipalities can expect additional income of 85 million each.

What is the imputed rental value?

It is a tax term used to describe the theoretical rental value that you would have to pay if you were renting your own property.

In Switzerland, this value is used to calculate taxes, even if you live in your own apartment or house and do not pay rent.

For owner-occupied apartments in the canton of Zurich, the imputed rental value is 4.25 percent of the tax value. For single-family homes, it is 3.5 percent.

Authorities get ready for more ‘hardship’ cases

As a result of this tax hike, a larger number of hardship cases — that is, people who won’t be able to afford higher property taxes — the cantonal government is calling for the introduction of a ‘hardship regulation.’

Under this measure, a tax charge on the imputed rental value should be anchored in the law if it leads to an excessive tax burden in relation to the household income and assets.

The current cantonal hardship regulation serves as a transitional solution, which is in effect until legal basis is enacted at a federal level.

READ ALSO: How fast are property prices rising in Zurich in 2024? 

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